Lido's liquid staking token for ether. Its rebasing balance reflects the holder's share of the pooled staking position.
stETH is the largest liquid staking token and the clearest example of a rebasing asset: the balance grows daily as staking rewards accrue. The common position treats each increase as staking income when it appears, with that value as basis in the new units. Whether the original ETH-to-stETH deposit was an exchange is unsettled.
The daily balance increases are generally treated as ordinary staking income when received. Receiving stETH for ETH in the first place is unsettled; we document the position and apply it consistently.
Source: Rev. Rul. 2023-14; IRS Notice 2014-21
Last reviewed September 18, 2026. Tax rules change; confirm current law before acting.
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